Costa Mesa is home to more than 112,000 individuals, while also providing access to the nearby populations of Santa Ana, Anaheim, and Long Beach. Being within 24 miles of Los Angeles makes Costa Mesa a prime region to live in, and commute to the city for work. This draws in a lot of Southern Californians who want to live in a quiet community, but still enjoy the thrills of big city living.
Multifamily properties are designed to host more than one family at a time. They come in all shapes and sizes, from apartment buildings, to multilevel houses with flats to rent. These units are beneficial to renters because they don’t require a down payment or mortgage, and provide access to shared features, such as on-site security, maintenance and upkeep provided by building management. Properties of this type in Costa Mesa vary in size, although most of the available units for sale tend to range in the small to mid-sized categories. This is good for individuals or companies who wish to pad their investment portfolio, but don’t want to take on too much at once.
Buying a multilevel property is a large commitment, particularly if you are planning to operate it as an income property by yourself. Before buying, there are a few things you should know about costs, day to day duties, standard risks, and how the location will affect your residents.
Costa Mesa Multifamily Property for Sale & Lease
Buying a multifamily property in Costa Mesa usually means purchasing an existing building and renovating and leasing it out to tenants. To bring in high-end tenants who you can count on to pay rent on time, you will need a good reputation for your property. A big pitfall of new multifamily property buyers is the bad reputation of the previous owner. Always check the reviews and ratings from previous tenants of the building you’re considering. Not only will this open your eyes to how much work it will take to make a name for yourself with that particular property, but it will also alert you to issues tenants have faced with their suites personally. From leaky faucets to broken doorknobs, remember that you’ll need to oversee maintenance of the property.
Just as buying from a reputable company is better for business, leasing from a property management company that has a good name is also important. While Costa Mesa is known for high quality apartments and clean housing districts, there are always possibilities of poor living conditions if you don’t choose carefully.
Costa Mesa Multifamily Property for Sale
Prices in Costa Mesa for multifamily properties are lower than more populated areas of Southern California. Depending on the location and size of the property, you could see prices ranging anywhere from $700,000 to $3 million. Knowing how large a space you want, and how much you’re willing to spend can help your realtor find prime choices for you to view.
Before buying, you should decide what you will do with your multifamily property. Some buyers choose to live in one unit, and rent the other units as a secondary source of income. Other buyers may lease the entire property out to tenants, and live off-site. If you choose to use your multifamily purchase as a form of income, you should look into the costs associated with hiring a building manager, maintenance man/woman, and landscaper.
There is always a risk when investing in property, and this is multiplied when you add multiple tenants to the list.
Costa Mesa Multifamily Property for Lease
Leasing in multifamily properties usually means renting a single unit in a much larger property. This can be beneficial if you don’t want to deal with the upkeep of a house, or you are unable to financially afford a mortgage on your own home. Living in a multifamily property rather than a single-family dwelling offers access to a multitude of shared features and amenities, as well as the security of having close neighbors, and a building manager to call in the case of an emergency.
These locations are ideal for seniors and students, but work well for professionals and families as well. For seniors, multifamily properties provide easy access to the community, and simplify the pressures of lawn care and home maintenance.
Like buying, leasing has its own risks, such as the bankruptcy of the building owners, hefty increases in cost each year, and the possibility of eviction based on the contract you sign. Leasing also includes a damage deposit in most cases, and restricts you from decorating, remodeling, and upgrading certain areas of your home. There may also be restrictions on pet ownership, and the volume of music and television after certain hours of the day.
Before you make the decision to buy or lease, speak to a broker and determine your financial standing, and what kind of benefits are involved in adding a multifamily property to your portfolio. There are risks and rewards to any real estate investment, and you can gain a lot of insight from a local broker who knows the area and the current financial climate.